VINAY (C.E.O. - Chief Executive Officer) (32 Points)
22 August 2014Dear Colleagues,
One of my clients has a query on Service Tax. He is service provider to one of the eminent banks . As per new rules banking companies are not supposed to pay service tax . Now he is facing problem on how to bill that bank and recover service from it for the services provided to the Bank.. Pl guide on the issue asap...thanks in advance ....
Venkatanarayana GM
(Partner associate at Hiregange & Associates)
(1279 Points)
Replied 22 August 2014
Dear Mr. Vinay,
Kindly describe the nature of service provided by your client. because if it is providing loan recovery agent service , the liability is shifted to banking company under reverse charge mechanism.
In such cases he neednot bill with service tax to banks. whereas if it is anyother service then your client suppose to collect service tax unless specific any other exemptions provided in the law for such services subjected to basic exemption limit of service tax.
To see that you please go through Negative list of services and refer Notification No 25/2012 ST
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